Financial market update

10 November 2011, Sweetcrude, Lagos – International news· JPY – Japan’s efforts to weaken the yen through market intervention may be diluted as its central bank still lags behind US and European counterparts in expanding the supply of money. Money supply in Japan increased by 82% since March 11, while in the US and Europe it increased by 339% and 160% resepectively.

· EUR – The Euro touched the lowest level in a month of 1.3484 before Italy sells 5 Billion euros of one year bills today. The success of those auctions will be crucial to the near- term direction in euro.

· CNY – Chinas exports rose at the slowest pace in almost two years in October as Europes deepening debt crisis crimped demand adding pressure on policy makers to support growth in the world’s second biggest economy.

· The FG, has unfolded plans to set up Business Competitiveness Council in order to improve the country’s investment climate and to be among the top 20 economies by 2020 according to the Minister of Trade and Investment, Dr. Olusegun Aganga. Trade volume between Nigeria and China will hit $10 billion by the end of 2011, Chinese companies had invested a total of $8.3 billion in Nigeria, noting that they were also involved in engineering projects worth $28.1 billion in the country according to Chen Jia China’s deputy minister for commerce.

· Bonds – Relatively quiet trading day yesterday to open this short week, the curve was largely stable today with only a handful of trades executed. Some light demand fed in on the 2013 & 2014 maturities.

· CBN offered and sold $100mio against a demand of $417.18mio, lowest intervention rate 154.3482(1% inclusive),depreciation of 2.08naira from the last auction.